American Axle to resume full talks with UAW on Wednesday

TerryKosdrosky

DETROIT (MarketWatch) -- A meeting Monday between American Axle & Manufacturing Holdings Inc.'s
AXL, +0.99%
Chief Executive and United Auto Workers President Ron Gettelfinger apparently has helped jump-start stalled talks aimed at resolving a strike at the auto supplier, as full negotiating teams from both sides are set to meet Wednesday for the first time in weeks.

American Axle spokeswoman Renee Rogers said the meeting between American Axle Chief Executive Richard E. Dauch and Gettelfinger was "productive," and top-level negotiators from both sides will meet Tuesday before the full teams meet Wednesday.

Monday's meeting between Dauch and Gettelfinger is the first positive development for some time in what has become a longer and more acrimonious strike than many initially thought. Talks have been sporadic and progress slow.

A spokesman for the UAW didn't return a call seeking comment.

About 3,650 American Axle workers represented by the UAW have been on strike since Feb. 26 in a dispute over wages and benefits. The strike has forced General Motors Corp.
GM, +1.43%
American Axle's largest customer, to fully or partially idle 30 plants.

GM will restore a shift this week at its pickup truck plant in Ft. Wayne, Ind., and two shifts next week and production will run through May 5, GM spokesman Dan Flores said. GM also will bring its pickup truck plant in Oshawa, Ontario, back on-line with two shifts starting April 21 through May 5.

But the auto maker will idle its SUV plant in Arlington, Texas, for three weeks starting April 21, Flores said.

While GM has an adequate inventory of pickup trucks and SUVs, the strike also is starting to affect the production of GM's cars. Other auto suppliers also have been forced to idle production.

American Axle is looking to cut its total hourly labor costs, which include wages and benefits, by about half. The company is expected to offer buyouts and buy-downs - payments made to offset the effect of a lower wage - in return.

American Axle has said that the UAW has agreed to similar terms at other suppliers, including its competitors. While the company was profitable last year, it said the plants in question have not been profitable for years. American Axle has other unionized plants in the U.S. not covered under the master labor contract.

The UAW has criticized a pay raise given to Dauch last year and Gettelfinger, in an April 4 opinion piece in The Detroit News, said the company's "poor negotiating practices are prolonging this dispute."

Last weekend, American Axle placed ads in newspapers that raised the possibility of hiring temporary replacement workers.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.